What Will Make BTC $500k?
Hougan spoke as Bitcoin continues its historical price discovery period. The cryptocurrency peaked at $89,864 on November 12 before falling to $85,200.
The top digital asset is up over 100% YTD. Since Donald Trump won the 2024 US presidential election, its market valuation has risen 25% to $1.76 trillion.
Hougan noted that BTC's $100,000 price “could be right around the corner.” The Bitwise CIO said investors may feel they missed the boat, but it's “still early” until BTC hits $500,000.
Hougan highlighted two variables that might push BTC to this lofty price estimate. First, government-led fiat currency debasement has increased demand for store-of-value assets like BTC and gold.
BTC may also profit from its growing popularity as a store of value. As the nascent asset matures, it will compete with gold, which has “made it.” Hougan says:
Bitcoin continues to evolve following this rise. Pensions and endowments investing tiny amounts in bitcoin are still news. The Department of Labor advises 401(k) providers to avoid Bitcoin due to “extreme care.” Big hedge fund investors still like crypto, which excites.
Bitcoin spot ETFs have been a huge success, according to Hougan. SoSoValue reports that US-based spot BTC ETF net assets amount just above $94 billion, or 5.3% of the BTC market cap.
The $500,000 price objective was criticized by Hougan because BTC's market size is under $2 trillion, compared to gold's $18 trillion. He stated that a “mature” BTC will have a gold-like market cap.
What Will Make BTC $500k?
Despite BTC's rising acceptability, Hougan says central bank acceptance is still absent, preventing BTC from reaching its lofty price objective.
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Governments possess less than 2% of BTC, but 20% of gold, according to Hougan. BTC has to close this deficit to attain $500,000 valuation.
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